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Managing the Bullwhip Effect in Semiconductor Supply Chain: A Case Study of Infineon Technologies AG
Infineon Technologies AG, a global top 10 semiconductor company, faced significant challenges in managing the volatility in demand and the bullwhip effect in their supply chain, especially during the COVID-19 pandemic. The semiconductor industry is characterized by capital intensity and high demand volatility, which is highly dependent on innovation cycles. The bullwhip effect, a phenomenon where order fluctuations are amplified as they move up the supply chain, was a major concern for Infineon. During the pandemic, the demand for automotive semiconductors dropped significantly due to reduced commuting, leading to excess inventory. However, when the market rebounded, the increased demand coincided with a global computer microchip shortage, exacerbating the bullwhip effect.
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